indigo
Delhi-based low-cost airline IndiGo has posted a net profit of Rs 27.3 billion for the quarter that ended June 2024.
The airline says that excluding foreign exchange loss, the profit amounted to Rs 27.86 billion, compared to Rs 29.74 billion previously. The Indian Rupee depreciated at least 2 percent during the latest quarter compared to the last quarter.
IndiGo reported that total income for the quarter ending June 2024 increased 18 percent to Rs 202.48 billion over the same period. The airline reported passenger ticket revenues of Rs 165.01 billion, an increase of 10 percent, while ancillary revenues increased by close to 14 percent at Rs 17.63 billion.
During the latest quarter, the airline’s fuel cost rose 22.7 percent to Rs 64.16 billion, up from Rs 52.28 billion previously. The airline reported that costs other than fuel increased 24.7 percent during the latest quarter at Rs 110.28 billion as against Rs 88.42 billion.
For the quarter ended June 2024, the Cost Available Seat Kilometer (CASK) stood at Rs 4.62, up close to 11 percent from Rs 4.17 previously. CASK measures the unit cost expressed in cash value to operate each seat for every kilometer. A lower CASK value would mean that it’s easier to earn revenue.
During the latest quarter, yields increased by 1.3 percent to Rs 5.24, although the load factor reduced by 1.9 points to 86.7 percent. The airline carried 27.8 million passengers, an increase of 6.2 percent from the previous quarter.
In the quarter that ended June 2024, the airline reported that revenue from operations increased by 17.3 percent to Rs 195.7 billion.
Commenting on the latest results, the airline’s Chief Executive Officer, Pieter Elbers, said the continued growth in total income of 18 percent as compared to the same period last year to Rs 202.5 billion and a net profit of Rs 27.3 billion resulted in a solid margin of around 14 percent.
Satyendra Pandey, managing partner of Aairavat Technology & Transport Ventures Private Ltd, felt that IndiGo’s latest numbers indicate a strong and profitable operation. “This coupled with a dominant market share and a 11 percent capacity increase versus the prior period. The other impressive statistic that stood out was the 13.9 percent increase in ancillary revenues,” he said.
Pandey thinks that, based on a comparison of the prior period, IndiGo added 56 aircraft and 17 additional destinations, including ten international cities. “The international operations followed traffic volume trends with a core focus on the Middle East and SE Asia and now also one destination in Africa. As the A321XLRs come online, this footprint will likely expand,” Pandey said.
He points out that the results also mention a customized compensation plan negotiated with the engine Original Equipment Manufacturers. “This also provides certainty to management and as it stands that IndiGo will likely also supplement capacity with alternate arrangements,” Pandey said adding “Overall the airline continues to be positioned extremely well. However, competitive dynamics, macro factors especially the FX and fuel rates and changing consumer behavior may have some impact on revenue in the coming quarters.”
IndiGo is the second of India’s two listed airline companies, SpiceJet being the other.
At the end of June this year, IndiGo had a fleet of 382 aircraft, including 38 A320 CEOs, 196 A320 NEOs, 98 A321 NEOs, 45 ATRs, 3 A321 freighters, and 2 B777 (damp lease), a net increase of 15 passenger aircraft during the quarter.
The airline operated at a peak of 2,029 daily flights during the quarter, including non-scheduled flights.
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